Coconut Industry Profile

Coconut is a dominant part of the Philippine agricultural landscape. It is planted in 69 out of the 82 provinces in the Philippines covering 3.67 million (M) hectares of arable land (PCA 2022). It is among the Philippines’ top commodities with 14.89 M tons of production in 2023 (PSA 2024). Consequently, it contributes to at least 35 percent (%) of the total agricultural export earnings of the country from 2013 to 2022 (PCA n.d.) providing livelihood to over 2.74 M coconut farmers (NCFRS 2024).

Based on preliminary data from the Philippines Statistics Authority (PSA), as of 2025, the coconut (with husk) production reached 14.5 million metric tons (MT). Davao Region was the largest producer of coconut with 1.9 million MT output or 13.7 percent share. With respective productions of 1.8 million MT (12.6%) and 1.7 million MT (12.3%), Northern Mindanao and Zamboanga Peninsula completed the top three regions with the highest coconut production.

There is a steadily growing global demand for raw coconut and its diversified, value-added products. The country enjoys a high demand for both traditional and novel products. Being referred to as the “tree of life” due to its wide array of uses, the coconut is mainly exported as products like virgin coconut oil (VCO) and desiccated coconut. The top promising nontraditional coconut products consist of VCO, coco water, coconut concentrate, liquid coco milk, coco cream, hydrogenated coconut oil, coco husk cubes, coco peat, baled coir, and glycerin (Department of Agriculture, 2022).

Challenges in the Industry

In the past, the coconut industry has experienced various challenges ranging from low production to natural calamities and pest infestations. Certain studies pointed to low productivity being caused by old and senile coconut trees. On the other hand, historical disasters, specifically typhoons Pablo and Yolanda in 2012 and 2013, also instigated massive damages on coconut farms and other key players within the coconut supply chain. The industry further faced numerous infestations from major coconut pests and disease such as the coconut scale insect (CSI), Asiatic Palm Weevil, Coconut Rhinoceros Beetle, and Coconut Cadang-cadang Viroid Disease. The CSI has notably affected coconut production when it was first observed in 2010. The CSI feed on the leaves, fruits, and flowers of the coconut tree, leaving only the trunk. This disables the production of coconuts, and the remaining use of the tree would simply be as coco-lumber. Although replanting of coconut trees is the immediate solution for the abovementioned problems, it will still take several years for them to reach the optimum maturity for production.

Coconut Policies

Coconut Programs

Data Source: Philippine Statistics Authority update as of May 30, 2024.

ISP for Coconut

DOST-PCAARRD ISP on Coconut aims to improved quality of planting materials and increase annual yield, reduce yield losses due to pests and diseases, and develop and enhance the utilization of coconut value-added products.

Strategic R&D

Strategic R&D is DOST-PCAARRD’s banner program comprising all R&D activities that are intended to generate outputs geared towards maximum economic and social benefits

Technologies

Products, equipment, and protocols or process innovations developed to improve productivity, efficiency, quality, and profitability in the agriculture and aquatic industries, and to achieve sustainable utilization and management of natural resources

Technology Transfer Initiatives

Technology Transfer  initatives ensure that the outputs of R&D and innovations are transformed into viable and applicable technologies that help intended users.

Capacity Building

Capacity building efforts of DOST-PCAARRD seek to develop and enhance the R&D capabilities of researchers and academic or research institutions through graduate assistantships, non-degree trainings & development, and/or upgrading of research facilities.

Infrastructure Development
Manpower Development
Capacity building on Coconut Genomics Program
  • Conducted lectures on Bioinformatics and Genomics Lecture for Plant Breeding Applications

  • Conducted several Bioinformatics Workshop in partnership with Boyce Thompson Institute (BTI) Cornell University, NY, USA

Policy Research & Advocacy

Analysis of policy concerns and advocacy of science-informed policies ensures that the AANR policy environment is conducive for S&T development and investments.

  • Competitiveness of Philippine Virgin Coconut Oil (VCO) under the ASEAN Economic Community (AEC)

    Producing VCO in the Philippines is competitive in terms of exports and import substitution. This implies that the country earns foreign exchange from exporting VCO. There is also no need to import said product from other countries because producing it is domestically cheaper. As long as the average yield (4.84 mt/ha in 2017) does not decrease by 54 percent, or domestic cost does not grow by 102 percent, the country will still be able to sustain its competitiveness in exporting VCO.

    Reference(s):

    Lapiña, G. F. and Andal, E. T. (2017). ASEAN Economic Community: Opportunities and Challenges for the Crops Sector. Los Baños, Laguna, Philippines: Philippine Council for Agriculture, Aquatic and Natural Resources